US Session Highlights
(US) New York Fed Consumer Expectations May survey: 1-year ahead inflation expectations at 2.6% v 2.8% prior; 3-year ahead inflation expectations at 2.5% v 2.9% prior (lowest since Jan)
(US) TREASURY’S $24B 3-YEAR NOTE AUCTION DRAWS 1.500% (lowest yield since Feb); BID-TO-COVER RATIO: 3.00 V 2.76 PRIOR AND 2.78 AVG OVER THE LAST 12 (highest BTC since Dec 2015)
(US) Pres Trump: administration will have ‘major’ legislation on steel and aluminum dumping – press
The sell-off from Friday rolled into today’s start to the week, albeit in a less dramatic way. Techs continued to be the under-performers today as well. The Tech sell-off initiated Friday spread to Europe this morning with STOXX 600 losing nearly 1%. Worst performing sectors for the S&P were Technology and Materials losing 0.7% and 0.6% respectively, best performing sectors were Energy and Real Estate, gaining 0.7% and 0.5% respectively.
US markets on close: Dow +0.2%, S&P500 +0.2%, Nasdaq +0.3%
Best Sector in S&P500: Telecom
Worst Sector in S&P500: Technology
Biggest gainers: UA +5.8%; KIM +4.0%; FTR +3.7%
Biggest losers: NFLX -4.2%; IDXX -3.9%; ALB -3.7%
At the close: VIX 11.5 (+0.8pts); Treasuries: 2-yr 1.36% (flat), 10-yr 2.21% (+2bp), 30-yr 2.87% (+1bps)
US movers afterhours
SYNA Acquires CNXT Holdings for $300M cash from MRVL; Guides Q4 R$420-430M v $431Me – filing; +2.5% afterhours
XLRN Announces top-line results from DART Phase 2 study of Dalantercept in advanced renal cell carcinoma; -5.2% afterhours
SAIC Reports Q1 $1.08 v $1.00e, Rev $1.10B v $1.11Be; -10.1% afterhours
Politics
(GE) Germany Chancellor Merkel’s Conservatives have support of 37.5% v 23.5%for the Social Democrats – INSA Poll
Key economic data
(AU) AUSTRALIA MAY NAB BUSINESS CONFIDENCE: 7 V 13 PRIOR; CONDITIONS: 12 V 13 PRIOR
(JP) JAPAN Q2 BUSINESS SURVEY INDEX (BSI) LARGE ALL INDUSTRY Q/Q: -2.0 V 1.3 PRIOR; BSI LARGE MANUFACTURING Q/Q: -2.9 V 1.1 PRIOR
Speakers and Press
Japan
(JP) Japan Fin Min Aso: USD can strengthen if Fed raises rates
(JP) BOJ’s Amamiya: Amount of BOJ’s JGB purchases fluctuates
(JP) BOJ expected to maintain economic assessment at this week’s policy board meeting – Japan press
Korea
(KR) Bank of Korea (BOK) Gov Lee: Fed rate hikes, household debt are risks to growth; to closely cooperate with Govt on economy
Asian Equity Indices/Futures (00:00ET)
Nikkei flat, Hang Seng +0.5%, Shanghai Composite +0.4%, ASX200 +1.2%, Kospi +0.6%
Equity Futures: S&P500 +0.1%; Nasdaq +0.2%, Dax +0.1%, FTSE100 +0.4%
FX ranges/Commodities/Fixed Income (00:00ET)
EUR 1.1190-1.1210; JPY 109.80-110.10; AUD 0.7540-0.7565; NZD 0.7190-0.7225
Aug Gold flat at 1,269/oz; July Crude Oil +0.4% at $46.24/brl; July Copper +0.2% at $2.62/lb
(CN) PBOC SETS YUAN MID POINT AT 6.7954 V 6.7948 PRIOR
(CN) PBOC to inject combined CNY50B v CNY40B prior
(JP) Japan’s MoF sells ¥0.9T in 0.6% (0.7% prior) 20-year JGBs; Avg yield: 0.583% v 0.560% prior; bid-to-cover: 3.98x v 3.84x prior
(AU) Australia Finance Ministry (AOFM) sells A$150M in 1.25% 2022 Indexed bonds; avg yield 0.2776%; bid-to-cover 3.63x
Asia equities notable movers
Australia
Bluescope (BSL) +4.6%: Market conditions remain stable and at elevated levels; stronger pricing, volumes and margins in H2 FY17 v H2 2016 – investor presentation
Ansell (ANN) +4.1%; Raised at Morgan Stanley
CSL Ltd (CSL) +1.3%; To acquire 80% stake in Chinese plasma fractionator for $352M
Japan
Fujitsu (6702) +2.0%; Said to mull raising dividend for FY17 – Nikkei
Toshiba (6502) -0.3%; Western Digital said to submit a new chip proposal to Toshiba this week; May raise offer to ¥2T ($18.2B) – Japan press
Softbank (9984) -1.2%; Reportedly reaches agreement to combine India’s Flipkart with Snapdeal – Nikkei
Hong Kong
Ping An (2318) +1.1%; Reports May YTD gross premium CNY211.2B, +38.6% y/y
L’Occitane (973) +0.8%; Reports Final FY16/17 Net €131.9M v €121.3Me, Rev €1.32B, +3.2% y/y
